Poor credit rating

Out of context: Reply #16

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  • mg330

    (Long post, sorry!)
    I've had bad credit, but it's getting better.
    I was a typical college student approached over the phone by a major credit card company offering a "University Alumni mastercard"
    when I was a freshman.
    I had done telemarketing so I figured I'd at least help the guy get part of his quota for the day.

    Got sent a card, waited a long time to activate it. Finally did to buy myself and my roommate BMX bikes and take a girl out on a date. He gave me cash for his bike to pay me back, and I spent it all shopping.

    Hit the $1000 max eventually, mostly through interested and nonpayment fees.

    Now, this is where it gets absurd.
    I managed to shut the card, and the debt out of my mind for like 2-3 years, to the point I accumulated over $4,000 in debt!!!!

    When I moved to Chicago, I didn't forward my address, so for a year my parents were getting mail, phone calls, etc. from the credit card company.

    Finally they caught up with me in Chicago, but what I got offered was quite nice.

    Another credit card company took on my debt (Capital One).
    The knocked off 10% of the balance, and gave me a credit account where the debt was in a no-interest segment of the account.
    Started me with a $100 limit, and for every $100 I paid, they increased my max by $25.

    In a nutshell, it's worked out great. I pay off my debt, have a card to use for small purchases, and get to prove that I can be consistent with payments. It was a great way out.

    But bad credit is terrible. That wasn't my only problem, but others were way smaller. I just got my first apartment on my own, and needed a higher deposit because of bad credit.
    (And I'm a little above the middle of the ratings scale.)

    I really need to take care of all of it, this kind of stuff ruins the chance to get mortgages, and all kinds of things.

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